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Answers (8)
Best Answer
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
I wouldnt blame everything on the appraiser - how about your AGENT who made thousands on the deal, where the appraiser made maybe $350. The appraiser is hired by you to confirm the value for the LENDER and thier loan, not so much YOU. What lender made a loan on it - a hard money lender or ?
Unpermitted additions are NOT ALLOWED by lenders to be valued by the appraiaser, even if he tried. Did you know it was unpermitted ? Your agent ? Maybe its an error on the second appraisal and the lender, maybe its tooo low....A lot of questions here...
Anyway, hire a GOOD appraiser now befroe you hire an attorney to sort things out. Here is a link for you to find a local appraiser. Get informed and get a good understanding of who is at fault.
- snortons
- Contributions:1
so you bought a house during this country's worse real estate bubble ever and .it's not worth what it used to be, and now you want somebody to take financial responsibility for your decision? really! so if the appraiser had said it wasn't worth what u were willing to pay, would you have written an article stating how unfair the system is?.....you don't get it both ways pinky...you picked the house out, you hired an agent who made thousands...and borrowed from a bank who made even more thousands,,,but u want to blame the guy who made the least and had no interest in the deal for providing his professional opinion. Well if there were cheaper houses available back then, why did u pass on them? why didn't u buy the cheaper house? why didn't your agent talk u out of this supposed over priced house? The appraiser is there to determine in his mind if the sales price is supportable and within reason...it doesn't come down to the exact penny...so just how much do u think you over paid? and if it was so obvious...why didn't u figure it out? it's your money, weren't u concerned? this is just another story from a typical home buyer who says, "we didn't know what we didn't know, but we know now what we didn't know..and we want to blame somebody who we think did know?...that's precious.
- OelrichTeam
- Contributions:0
When you refinance a home, the opinion of value is fare more subjective than when you purchase a home, because in the case of a purchase---aside from unique circumstances---an informed buyer will not pay more for a home than what it is currently worth, and the purchase price is the result of negotiating back & forth to arrive at a fair value.
In the case of a refinance, the appraiser is simpling providing an opinion of how your home compares to other homes that are as similar to your home as possible (e.g., size, # of rooms, lot size, style of constructions, etc.) that have sold recently, and are in close proximity to your home. It does NOT mean that your home is worth exactly the amount that the appraiser opines. If there are hasty sales, distressed sales, etc., that are recent & proximate to your home, then your appraisal can come in much lower than what you would have expected.
That said---I would still do some homework to see if there are superior comparable sales that may have been overlooked by the appraiser, particularly in light of the fact that you've invested in upgrades to your home. If that is the case, you can request a reconsideration of value based on the more comparable sales.
In the case of a refinance, the appraiser is simpling providing an opinion of how your home compares to other homes that are as similar to your home as possible (e.g., size, # of rooms, lot size, style of constructions, etc.) that have sold recently, and are in close proximity to your home. It does NOT mean that your home is worth exactly the amount that the appraiser opines. If there are hasty sales, distressed sales, etc., that are recent & proximate to your home, then your appraisal can come in much lower than what you would have expected.
That said---I would still do some homework to see if there are superior comparable sales that may have been overlooked by the appraiser, particularly in light of the fact that you've invested in upgrades to your home. If that is the case, you can request a reconsideration of value based on the more comparable sales.
- Julie & Greg Schnieders, "Truth in Real Estate"
- Contributions:91
Hi,
I would definitely ask the appraiser to add in the improvements so you are comparing apples to apples. Also one appraiser may give a different appraisal from another, especially if they are not familiar with the homes in the area. Another thing to keep in mind is appraisers are more conservative on refinances than they are on purchases. Housing prices have dropped a little bit but not by a huge margin compared to 2008. When you know you will be getting an appraisal it's a good idea to have your Realtor gather comps for you to give to the appraiser. They will be more inline with actual values in your neighborhood.
All the best,
Julie
I would definitely ask the appraiser to add in the improvements so you are comparing apples to apples. Also one appraiser may give a different appraisal from another, especially if they are not familiar with the homes in the area. Another thing to keep in mind is appraisers are more conservative on refinances than they are on purchases. Housing prices have dropped a little bit but not by a huge margin compared to 2008. When you know you will be getting an appraisal it's a good idea to have your Realtor gather comps for you to give to the appraiser. They will be more inline with actual values in your neighborhood.
All the best,
Julie
- Bonnie Gausewitz, "bonnieg1"
- Contributions:3
Hi "Pinkyfinger",
When you are in the process of obtaining a loan, the appraiser is working for the financial institution who has hired him or her to determine if both the property and the borrower are a safe investment. The appraiser isn't hired to determine the exact value of a home. Instead they look for comparable properties to prove to the bank that the pre-determined sales price of the home can be supported by other sales in the neighborhood. Most likely there were higher sales back in March 2010 in your neighborhood and more recently there may have been a few "distressed sales" without any strong ones to balance the price out. Financial institutions are a lot more cautious these days and I have seen appraisers come up with values and take an extra 5% off just to be safe. You can certainly ask for copies of both appraisals and review them carefully. I doubt you can go after the first appraiser legally as he or she was hired by the bank.
You certainly can ask for your property taxes to be reduced. It is a failry simple process. Call the OC Assessor's office and they will send you a package.
In the future, the best way to determine the current market value of your home is to call an active, local real estate professional and ask them for a complimentary market evaluation.
Good luck!
Bonnie
When you are in the process of obtaining a loan, the appraiser is working for the financial institution who has hired him or her to determine if both the property and the borrower are a safe investment. The appraiser isn't hired to determine the exact value of a home. Instead they look for comparable properties to prove to the bank that the pre-determined sales price of the home can be supported by other sales in the neighborhood. Most likely there were higher sales back in March 2010 in your neighborhood and more recently there may have been a few "distressed sales" without any strong ones to balance the price out. Financial institutions are a lot more cautious these days and I have seen appraisers come up with values and take an extra 5% off just to be safe. You can certainly ask for copies of both appraisals and review them carefully. I doubt you can go after the first appraiser legally as he or she was hired by the bank.
You certainly can ask for your property taxes to be reduced. It is a failry simple process. Call the OC Assessor's office and they will send you a package.
In the future, the best way to determine the current market value of your home is to call an active, local real estate professional and ask them for a complimentary market evaluation.
Good luck!
Bonnie
- pinkyfinger
- Contributions:2
Thanks for the suggestions everyone. I guess I should have mentioned that the house had un-permitted additions that the new appraiser did not take into consideration and the old appraiser totally over valued. Houses in my tract are selling for low 300's. They weren't for sale in 2010 so weren't available as comps then. If I were to sell the house now, it would probably go for $350-380K which I can understand. However, it's just upsetting that I cannot even qualify for a refinance after putting 20% down, making improvements to the house, and paying 17 months of mortgage to increase my equity on it.
This is my first house. I made many mistakes that I hope to never repeat again. I will never just allow for one appraiser's opinion before making a purchase and I recommend everyone to do the same.
This is my first house. I made many mistakes that I hope to never repeat again. I will never just allow for one appraiser's opinion before making a purchase and I recommend everyone to do the same.
- Michael Helton
- Contributions:456
pinky, you also have to consider that an appraisal is, at the end of the day, a guess. An educated guess, but still subjective. It is not uncommon for different appraisers to appraise the same property at a 20% range.
- Clay Branch, "Georgia Loans"
- Contributions:7835
If you have a copy of the original appraisal you can have a reputable appraiser do a review, probably $250-$300. You are showing a value drop of about 28% which does not reflect the Anaheim market for the most recent 17 months, as you know. Look at the comps on the refinance appraisal to see if 2 or 3 comps are foreclosures or short sales. If not, did you buy in a new subdivision? If so, how many sales were closed and used for comps on your original appraisal?
Appraisal Questions
I bought a house in March 2010 and it appraised for 425K. I paid 20% down of 425 (the asking price was 450K) and over a year later, Aug 2011, I got it appraised to do a refinance. It got appraised for 305K and since that means I'm underwater (I owe 330K on the house still), I can't refinance with my credit union (unless I put more cash in).
I am trying to see if I can seek legal action against the original appraiser or get my property tax bill reduced because of the over appraisal of the home when I originally purchased it. I bought it after the 2008 & 2009 drop in housing prices. I don't understand how such a huge difference in appraisal values could happen after 17 months with some improvements to the house made since I purchased it. Should I get a retroactive appraisal to see if I can support my claim that the house was overvalued by the original appraiser? Has anyone has a similar problem due to a home purchased AFTER the housing bubble burst?
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